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Triangle Business Today

New home sales, jobless claims rise; mortgage rates drop

Posted August 24, 2012
Updated August 27, 2012

Treasury Yields will Rise, and Treasury Yields will fall. After experiencing a few trading sessions with rising yields and mortgage rates, the tide has turned, and we’re on the way down again… at least for now. Moments after the most recent iteration of the Fed Minutes was released on Wednesday afternoon, yield direction changed dramatically, and we’ve now moved to a yield of 1.64 as of Friday morning. (We had been as high as 1.86 earlier this week). Mortgage rates have seen quite an improvement over the past two trading sessions, thanks in part to the markets leaning more towards the idea that the Fed will provide some type of easing over the next thirty days or so.

July New Home Sales increased 3.6% on Thursday which is good news for housing, but the real diamond data is the year over year number which indicates that sales are 25.3% higher than last year.
Jobless claims on Thursday rose 4,000 to a seasonally adjusted average of 372,000 for the week ending August 18th. Economists were expecting the number to be slightly lower.

Durable Goods for July rose 4.2% Friday, which is a dramatic departure from the June number of a 1.6% increase. However, even though the overall number was stronger than the June report, it’s the report’s internal mixed data which has economists concerned about the slowing of manufacturing. Have a great weekend!

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About this Blog:

Jeremy Salemson, CEO of Corporate Investors Mortgage Group, blogs about economic trends and data and their impact on Triangle business. Each week, he interviews a Triangle-area business leader for a personal look at the local economy.